WASHINGTON (Pakistan Point News / Sputnik - 18th January, 2023) The United States is extending the sanctions waiver that allows certain US transactions related to the sale or transfer of CITGO shares in connection with the PDVSA 2020 8.5 percent bond, the US Treasury's Office of Foreign Assets Control said in a notice.
"Except as provided in paragraph (b) of this general license, on or after April 20, 2023, all transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, SA 2020 8.5 Percent Bond that would be prohibited by subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018, as amended by E.O. 13857 of January 25, 2019, and incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized.," OFAC said on Tuesday.
The license waives a US measure, for certain transactions, that restricted Americans from engaging in certain transactions related to the sale or transfer of CITGO shares in connection with the PDVSA 2020 8.5 percent bond.
The new rule goes into effect immediately as of Tuesday, the notice said.
The US Treasury provided in November a new license that allows Chevron to extract oil in Venezuela for six months through its joint venture partners such as PDVSA. However, this license does not expand operations or allow new US investment in Venezuela's oil sector.
The United States granted the new license after the Venezuelan government and the opposition resumed talks in Mexico City and came to an agreement on addressing the humanitarian crisis in the country, including an agreement on the continuation of talks focused on elections to be held in 2024.
According to US officials, Venezuela-related sanctions and restrictions imposed by the United States still remain in place and this decision should not be interpreted as a permissive environment on sanctions.
However, the United States will consider whether its policies remain open to further calibrating of the sanctions regime, which will depend on whether the Venezuelan government takes concrete steps to address several key issues.
